Free 7-day Trial
All Articles and Columns »

Crexus Investment Corp Reports Operating Results (10-Q)

August 08, 2012 | About:
insider

10qk

18 followers
Crexus Investment Corp (CXS) filed Quarterly Report for the period ended 2012-06-30.

Crexus Investment Corp has a market cap of $773.1 million; its shares were traded at around $9.99 with a P/E ratio of 7.1 and P/S ratio of 7.3. The dividend yield of Crexus Investment Corp stocks is 10.7%.
This is the annual revenues and earnings per share of CXS over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of CXS.


Highlight of Business Operations:

Results of Operations Net Income Summary Our net income for the quarter and six months ended June 30, 2012 was $14.4 million and $30.5 million, or $0.19 and $0.40 per share, respectively. Our net income for the quarter and six months ended June 30, 2011 was $22.1 million and $26.7 million, or $0.29 and $0.55 per share, respectively. We attribute the decrease in net income for the quarter ending June 30, 2012 to the sale of our CMBS portfolio for a gain of $13.9 million during the quarter ended June 30, 2011. We primarily attribute the increase in net income for the six months ended June 30, 2012 to the purchase of additional interest earning assets.

Our net income for the quarter and six months ended June 30, 2012 was $14.4 million and $30.5 million, or $0.19 and $0.40 per share, respectively. Our net income for the quarter and six months ended June 30, 2011 was $22.1 million and $26.7 million, or $0.29 and $0.55 per share, respectively. We attribute the decrease in net income for the quarter ending June 30, 2012 to the sale of our CMBS portfolio for a gain of $13.9 million during the quarter ended June 30, 2011. We primarily attribute the increase in net income for the six months ended June 30, 2012 to the purchase of additional interest earning assets.

Interest Income and Average Earning Asset Yield We had average earning assets of $638.6 million and $1.1 billion for the quarters ended June 30, 2012 and 2011, respectively, decreasing primarily as a result of the sale of Agency RMBS during the quarter ended December 31, 2011. Our interest income, net of service fees, was $17.6 million and $12.9 million for the quarters ended June 30, 2012 and 2011, respectively and the yield on our portfolio, excluding cash, was 11.00% and 4.64% for the quarters ended June 30, 2012 and 2011, respectively. Interest income increased $4.6 million primarily due to the purchase of interest earning assets and recycling of maturing assets in to higher coupon loans. We had average earning assets of $663.9 million and $766.1 million for the six months ended June 30, 2012 and 2011, respectively, decreasing primarily as a result of the sale of Agency RMBS during the quarter ended December 31, 2011. Our interest income, net of service fees, was $40.7 million and $20.7 million for the six months ended June 30, 2012 and 2011, respectively and the yield on our portfolio, excluding cash, was 12.25% and 5.29% for the six months ended June 30, 2012 and 2011, respectively. Interest income, net of service fees, increased $20.4 million primarily due to the recognition of accretion income related to refinancings, settlements and maturities of those assets and an overall increase in the weighted average coupon of the portfolio. Interest Expense and the Cost of Funds We had average borrowed funds of $27.4 million and $119.0 million and total interest expense of $310 thousand and $742 thousand for the quarters ended June 30, 2012 and 2011, respectively and our average cost of funds was 4.52% and 2.49% for the quarters ended June 30, 2012 and 2011, respectively. Our interest expense decreased $432 thousand for the quarter ended June 30, 2012 as compared to the quarter ended June 30, 2011 primarily due to repayment of the TALF debt. We had average borrowed funds of $29.5 million and $145.6 million and total interest expense of $670 thousand and $2.3 million for the six months ended June 30, 2012 and 2011, respectively, and our average cost of funds was 4.54% and 3.12% for the six months ended June 30, 2012 and 2011, respectively. Our interest expense decreased $1.6 million for the six months ended June 30, 2012 as compared to the six months ended June 30, 2011 primarily due to the repayment of the TALF debt. Net Interest Income Our net interest income, which equals interest income less interest expense and service fees, totaled $17.3 million and $12.2 million for the quarters ended June 30, 2012 and 2011, respectively. Our net interest income increased $5.1 million primarily due to the purchase of additional assets at a discount and the recognition of accretion income associated with that discount for the quarter ended June 30, 2012 when compared to the quarter ended June 30, 2011. Our net interest spread, which equals the yield on our average assets for the period less the average cost of funds for the period, was 6.48% and 2.15% for the quarters ended June 30, 2012 and 2011, respectively. For the quarter ended June 30, 2012, the increase in net interest spread is primarily due to an increase in the recognition of discount accretion income when compared to the quarter ended June 30, 2011. Our net interest income totaled $40.0 million and $18.0 million for the six months ended June 30, 2012 and 2011, respectively. Our net interest income increased $22.0 million primarily due to the purchase of additional assets at a discount and the accretion income associated with that discount for the quarter ended June 30, 2012 when compared to the quarter ended June 30, 2011. Our net interest spread was 7.71% and 2.17% for the six months ended June 30, 2012 and 2011, respectively. For the six months ended June 30, 2012, the increase in net interest spread is primarily due to an increase in the recognition of discount accretion income when compared to the quarter ended June 30, 2011.

We had average earning assets of $638.6 million and $1.1 billion for the quarters ended June 30, 2012 and 2011, respectively, decreasing primarily as a result of the sale of Agency RMBS during the quarter ended December 31, 2011. Our interest income, net of service fees, was $17.6 million and $12.9 million for the quarters ended June 30, 2012 and 2011, respectively and the yield on our portfolio, excluding cash, was 11.00% and 4.64% for the quarters ended June 30, 2012 and 2011, respectively. Interest income increased $4.6 million primarily due to the purchase of interest earning assets and recycling of maturing assets in to higher coupon loans.

We had average earning assets of $663.9 million and $766.1 million for the six months ended June 30, 2012 and 2011, respectively, decreasing primarily as a result of the sale of Agency RMBS during the quarter ended December 31, 2011. Our interest income, net of service fees, was $40.7 million and $20.7 million for the six months ended June 30, 2012 and 2011, respectively and the yield on our portfolio, excluding cash, was 12.25% and 5.29% for the six months ended June 30, 2012 and 2011, respectively. Interest income, net of service fees, increased $20.4 million primarily due to the recognition of accretion income related to refinancings, settlements and maturities of those assets and an overall increase in the weighted average coupon of the portfolio.

Read the The complete Report

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide